Anchorage Digital Stands Alone as the Only OCC-Chartered Crypto Bank

Anchorage Digital has emerged as the only OCC-chartered crypto bank after other attempts at obtaining federal charters have failed or been withdrawn. This news comes as Figure Technologies, Inc. has decided to pull its application to become a federally chartered bank in the U.S. The decision follows increased scrutiny from Wall Street lobbyists and state banking regulators, who were concerned about potential competition and compliance issues. Figure had pursued the charter as a way to streamline its numerous state licenses for financial activities across the country. However, the charter was officially withdrawn on July 31. In contrast, Anchorage Digital successfully obtained its OCC charter in 2021, while other companies like Paxos and Protego were unable to secure conditional approvals.

Key Points:
– Figure Technologies, Inc. has withdrawn its application for a federal charter.
– Wall Street lobbyists and state banking regulators were skeptical of Figure’s application.
– Anchorage Digital is now the only OCC-chartered crypto bank.
– Other companies, such as Paxos and Protego, were unsuccessful in obtaining charters.
– Regulators have expressed concerns about the risks associated with the crypto industry.

This development highlights the challenges and complexities of obtaining federal charters for crypto banks. The withdrawal of Figure’s application and the success of Anchorage Digital demonstrate the hurdles that companies face in navigating the regulatory landscape. It also underscores the cautious approach taken by regulators in light of the volatile nature of the crypto industry. Despite these challenges, Anchorage Digital’s achievement as the only OCC-chartered crypto bank solidifies its position as a leader in the space.

Hot Take: Anchorage Digital’s status as the sole OCC-chartered crypto bank showcases the company’s commitment to compliance and regulatory standards. While the withdrawal of Figure’s application reflects the difficulties in obtaining a federal charter, it also highlights the importance of thorough planning and adherence to traditional banking obligations. The crypto industry continues to face scrutiny and must work to build trust and stability within the financial system.